Regional casino operator Century Casinos (NASDAQ: CNTY) has announced plans to initiate a stock repurchase program in the coming weeks, potentially amounting to millions of dollars.
On the company’s first-quarter earnings call, Co-CEO Peter Hoetzinger confirmed that Century Casinos intends to begin repurchasing shares soon, emphasizing the company’s belief in its long-term growth potential despite current market uncertainties.
“The current environment is a little less certain than it was maybe a quarter ago, so we will be cautious, but we believe CNTY is the best casino investment with the highest growth potential out there. Hence, we plan to buy back stock in the coming weeks,” Hoetzinger stated.
Details on the Buyback Plan
Unlike standard corporate repurchase announcements, Century Casinos did not disclose the specific size of its buyback program. However, Hoetzinger indicated that it would likely fall within the single-digit million-dollar range.
Publicly traded companies are not required to specify exact amounts for stock buybacks nor fully commit to a fixed total, allowing flexibility in the execution of such programs.
Strategic Timing for Share Repurchases
Century Casinos has faced significant stock declines, tumbling 52.12% in the past 90 days and 62% over the past month. The downturn presents an opportunity for the company to repurchase shares at a favorable valuation, rather than at inflated prices—a mistake commonly associated with buyback initiatives.
“We think we’ll start between now and our next earnings release in early August,” Hoetzinger added.
With $85 million in cash and cash equivalents, Century Casinos has the financial resources necessary to execute share repurchases. Even a hypothetical $3 million buyback could meaningfully reduce the company’s current outstanding shares of 30.68 million.
Poland Asset Divestiture Still on the Table
A lingering question surrounding Century Casinos is its plan to sell its stake in Casinos Poland, a transaction delayed due to geopolitical uncertainty following Russia’s invasion of Ukraine.
Hoetzinger reiterated the company’s commitment to the sale, noting that two new interested parties have emerged and discussions with its minority partner are progressing toward a potential full divestment.
“We are still committed to divesting our Poland operations. Two newly interested parties have surfaced recently, and discussions with our minority partner are also going well for potential sale of 100% of the company,” Hoetzinger said.
While Casinos Poland does not currently offer sports betting, Poland permits commercial operators in that sector. Some interested buyers are reportedly aligned with sports betting businesses, which could influence the direction of the sale.
Century Casinos’ strategic financial decisions, including its stock buyback and Poland asset divestiture, are expected to shape its long-term trajectory in the gaming industry.
